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The research examined the validity of four commonly held assumptions which appear to be the bases of public school policy in British Columbia.
1. The rate of increase in the price of public school education has been greater than price increases in the economy generally.
2. There has been an increase in the quantities of goods and services purchased and that these goods and services are not required for the educative process.
3. A reduction in the flow of funds will curtail the purchases of goods and services not required for the educative process.
4. The rate of increase in price can be curtailed by reducing the flow funds to public schools and by restricting the rate of increase in. teachers' salaries.
A price index, using the Paashe method, was first constructed. Then, using this index operational expenditures for public schools in B.C. between 1961 and 1969 were deflated. Differences in the costs of elementary, junior secondary, senior secondary, special elementary and occupational students were used to weight student data to determine changes in the units of output. Unit costs were determined in current and constant dollar terms.
Analysis of the data demonstrated that the rate of increase in the price of public school education was lower than the rate of increase in the prices of the products of some other labour intensive industries and the average weekly wage of British Columbians. Further, that the rate of increase in the price and the rate of increase in the quantity of services purchased were inversely related to the degree to which the services are directly involved in the educative process.

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